Ppg Industries, Inc. · NYSE:PPG

Ppg Industries — Merger or Acquisition (June 2014)

15 slides from Ppg Industries's merger presentation, Jun 30, 2014

  1. Slide 1: PPG Reaches Agreement to Acquire Comex

    PPG Reaches Agreement to Acquire Comex Charles E. Bunch – Chairman of the Board and Chief Executive Officer Michael H. McGarry – Executive Vice President Frank S. Sklarsky – Executive Vice President and Chief Financial Officer Glenn E. Bost II – Senior Vice President and General Counsel Information

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters within the meaning of Section 27A of the Securities Act of 1933

  3. Slide 3: Discussion Topics

    Discussion Topics • Transaction Overview • Comex Business Overview • Impact on PPG and Summary 3

  4. Slide 4: Transaction Highlights

    Transaction Highlights • Overview:  Acquisition of Consorcio Comex, S.A. de C.V. (“Comex”) • Price/Financial:  $2.3 billion purchase price  PPG financing – Will likely be financed by existing PPG cash and short-term investments. Possibility that some debt may be utilized  Expect to be immediatel

  5. Slide 5: Discussion Topics

    Discussion Topics • Transaction Overview • Comex Business Overview • Impact on PPG and Summary 5

  6. Slide 6: Comex Business Overview

    Comex Business Overview • Founded in 1952; Privately Owned • Architectural, Industrial and other Specialty Coatings and Materials • Latin American Based  Headquartered in Mexico City  Sales in Mexico and other Central American countries  Leading architectural coatings position in Mexico  Well-re

  7. Slide 7: Comex Operating Footprint

    Comex Operating Footprint Comex Distribution • 8 Manufacturing Plants Comex Plant • 6 Distribution Centers • 3,900 Employees Broad regional manufacturing and distribution footprint 7

  8. Slide 8: Comex Revenue Mix

    Comex Revenue Mix Approximate Sales Mix (~$1B USD) Industrial Coatings and Specialty Coatings & Materials 35% 65% Architectural Coatings Strong array of well-recognized products to serve regional customers 8

  9. Slide 9: Mexico Statistics

    Mexico Statistics GDP/ Region Population Capita (MM) BAJA CALIFORNIA N (‘000) Northern 24 $19 Border SONORA Southwest 27 $13 CHIHUAHUA NUEVO COAHUILA LEON Mexico City 20 $25 ZACATECAS TAMAULIPAS Center 18 $13 BAJA CALIFORNIA S DURANGO SAN LUIS POTOSI GUANAJUATO Southeast 23 $17 HIDALGO YUCATAN SINAL

  10. Slide 10: Discussion Topics

    Discussion Topics • Transaction Overview • Comex Business Overview • Impact on PPG and Summary 10

  11. Slide 11: PPG Portfolio Transformation

    PPG Portfolio Transformation 2004 - $9.5B Sales 2013 - $15.3B Pro forma* 7% 23% Coatings 56% Chemicals 21% Glass 93% Coatings = $5B Coatings = $14B Coatings >90% Portfolio; Coatings CAGR = 12% * Pro forma 2013 sales includes Comex acquisition and recast financial results following Transitions Optica

  12. Slide 12: PPG's Geographic Mix

    PPG’s Geographic Mix Current PPG Pro Forma* PPG 5% U.S. & Canada 11% 17% Western Europe 16% 45% 43% 8% Eastern Europe 7% Asia 25% Latin America 23% Acquisition further balances PPG’s geographic footprint All percentages are approximate * Pro Forma includes current geographic sales mix including 2013

  13. Slide 13: Coatings Industry Participation

    Coatings Industry Participation Current Pro Forma* PPG (w/Comex) PPG Akzo- Akzo- Nobel Nobel Others Sherwin- Others Sherwin- Williams Williams Axalta Axalta Valspar Valspar BASF BASF RPM RPM Jotun Kansai Jotun Kansai Nippon Nippon Sources: Company reports and PPG estimates * Current adjusted for PPG

  14. Slide 14: PPG Cash

    PPG Cash 1Q Cash & Short Term Notable Recent Cash Items Investments ($MM) $3,500  Full Year 2013 – PPG deploys approx. $3,039 $1 billion for acquisitions and $1 billion $3,000 on share repurchases  March 2014 – PPG finalizes sale of $2,500 $2,380 ownership interest in Transitions Optical joint ven

  15. Slide 15: Summary

    Summary • Comex is the Leading Paints and Coatings Company in Mexico and Central America  Well-recognized regional brands  Excellent operational footprint  Mexico is a growing Latin American country • Acquisition Expands PPG’s Global Coatings Business  Adds a leading architectural coatings busin

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